KBanks Strategic Approach to Fintech with Domestic and Foreign Partners

KASIKORNBANK (KBank) is joining the FinTech fray via partnerships with domestic and foreign counterparts to enhance business advancement of customers in the digital era. This reiterates the corporate strategy toward the digital revolution wherein the Bank is poised for any changes.

Mr. Pipit Aneaknithi, KBank President, has said that fast-changing developments in digital technologies have led to many new dimensions in services that have influenced consumer behavior and mindset. This not only affects Thailand, but also has global repercussions, as seen from the widespread adoption of digital technology to enhance economies, societies and the quality of life. Many governments have already implemented infrastructural developments to meet the changing lifestyles in their populations. On the financial front, new FinTech participants have entered various business segments, e.g., the use of state-of-the-art technologies in financial systems. Consumers are thus enjoying greater convenience, faster transactions, lower costs and higher security.

Another significant factor in this panoramic change is the realization of the ASEAN Economic Community (AEC), which facilitates funds flows and attracts investors from outside the bloc to business opportunities here. Thus, regional GDP growth is leapfrogging to the top ranks globally. Other large economies in Asia, particularly China, Japan and South Korea (ASEAN+3), are combined into an aggregate GDP with the AEC of USD18.9 trillion or a quarter of the global total, making Asia's economy of equal significance to that of the EU and US economies.

As a financial institution that stands ready to sustainably advance in all eras, KBank must face this new challenge. KBank strategies are being revised for better customer responsiveness toward both personal and business customers. As for individual customers, they now have many choices in digital lifestyle services, proven by the total number of mobile internet accounts that has surpassed the size of the total population, which means that many persons access the internet using more than one mobile phone number. To differentiate itself from peers, KBank has opted for technology-based development. Being Thailand's first bank to offer mobile banking services, K-Mobile Banking, KBank remains the market leader with the largest of mobile banking user base here.

For corporate customers, new systems have also been introduced using proprietary technologies in cooperation with many partners and new entrants into the FinTech field to cater to a variety of business needs. KBank customers can now transact currency exchange in all AEC currencies, as well as make direct funds transfers in many currencies without the need of intermediary agent banks. As such, transaction times, expenses and operating costs are reduced, while security is also elevated. Another notable new service is the issuance or renewal of Letters of Guarantee (L/G) via electronic channels, available 24/7, to increase efficiency in customers' operations and help prevent missing good business opportunities, while also helping cut processing time and costs.

With regard to international business, trade activities between ASEAN and China/Japan/Korea continue to rise; their FDIs are now equal to those in the US. This scenario is not to be overlooked; KBank has been preparing for international business expansion via the opening of new overseas branches and representative offices, as well as the fostering of partnerships with over 70 public and private entities in other countries, using digital technology to respond to business needs here and there.

Mr. Pipit added that the most important factor to KBank's digital era advancements has been the adoption of visionary corporate business strategies to achieve these goals. Internal adjustments are crucial to human resource management and staff recruitment in order to find the most capable employees for the corporate culture, who will assist KBank in its changes to meet today's ever-changing world. The Key Performance Indicators (KPIs) will be modified to reflect additional measures in corporate efficiency; staff attitude adjustment will be undertaken so that they are aware of the intense competition and that the customer service quality remains among the very best.

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